:00:07. > :00:12.This is Business Live from BBC News with Sally Bundock
:00:13. > :00:20.A make or break week for Deutsche Bank -
:00:21. > :00:23.it's boss John Cryan is expected to negotiate deals on job losses
:00:24. > :00:26.in Germany as well as try to negotiate a much smaller legal
:00:27. > :00:40.Live from London, that's our top story on Monday 3 October.
:00:41. > :00:42.Leading German firms have rushed to defend Deutsche Bank
:00:43. > :00:44.amid concerns over the troubled lender's financial health.
:00:45. > :00:47.Executives from Siemens, Daimler, Munich Re and BASF all say
:00:48. > :01:02.The UK's Chancellor, Philip Hammond, is expected to say
:01:03. > :01:05.at the Conservative party conference today that he will manage
:01:06. > :01:07.the economy in a different way to his predecessor,
:01:08. > :01:16.Markets today, a public holiday in Germany. Elsewhere at a slight
:01:17. > :01:22.uptake but sterling has been falling. We will tell you why.
:01:23. > :01:26.We will be getting the inside track on how a Japanese fashion brand is
:01:27. > :01:32.hoping not to get lost in translation, as it makes a move into
:01:33. > :01:35.Europe. And it used to be a British tradition to put the kettle on for a
:01:36. > :01:38.cup of tea during the break of your favourite TV shows, but not any more
:01:39. > :01:43.according to the main energy supplies. People say more people use
:01:44. > :01:47.on demand and catch up services to watch television. So we want to know
:01:48. > :01:49.from you, how much live television do you watch? Maybe you are watching
:01:50. > :02:05.now. Use the hashtag BBC live. A warm welcome to the programme. I
:02:06. > :02:09.hope you have your cup of tea or coffee latte or whatever you are
:02:10. > :02:13.drinking right now. We have a packed programme with plenty to discuss. We
:02:14. > :02:14.are starting with the fact it is another pivotal seven days for
:02:15. > :02:16.Deutsche Bank following a week in which shares
:02:17. > :02:19.in the German lender fell Deutsche is in the process
:02:20. > :02:23.of negotiating a 14 billion dollar fine in the US for mis-selling
:02:24. > :02:26.mortgage-backed bonds in the lead up Over the weekend, German business
:02:27. > :02:30.leaders have come out These include the engineering
:02:31. > :02:37.conglomerate Siemens and the parent company of Mercedes-Benz,
:02:38. > :02:38.Daimler. Last week, Deutsche's chief
:02:39. > :02:43.executive John Cryan moved to reassure staff
:02:44. > :02:45.about the bank's financial position, stating that the fall in share price
:02:46. > :02:48.was due to what he called Following reports that Deutsche
:02:49. > :02:58.could reach a far smaller settlement with US authorities,
:02:59. > :03:00.the company's New-York listed shares It's also reported he's poised
:03:01. > :03:06.to reach a deal with labour unions in Germany this week paving the way
:03:07. > :03:16.for job cuts in its home market. He is Senior Analyst,
:03:17. > :03:26.Lafferty Ratings. welcome to the programme, good to
:03:27. > :03:29.have you with us. Just before we get into the nuts and bolts, can you
:03:30. > :03:36.remind people around the world watching, Deutsche Bank, a
:03:37. > :03:39.relatively small bank in a global scale, but everyone seems to think
:03:40. > :03:44.it is the most dangerous bank in the world. Can you explain why? I think
:03:45. > :03:48.it is probably to do with its derivatives book. It does have a
:03:49. > :03:54.large amount of derivatives on it. That means their linkage is between
:03:55. > :03:58.lots of different banks, so lots of banks would be counterparties. If
:03:59. > :04:02.something happened to Deutsche there would be a knock-on effect? Yes, it
:04:03. > :04:12.could injure the system. It probably has a bigger systemic risk. On
:04:13. > :04:19.Friday they wrote an e-mail to the staff saying it's speculation. That
:04:20. > :04:26.it was rumours, but that is not the case, this is a bank in trouble?
:04:27. > :04:30.Well, the investors have only been willing to pay 30 cents for every
:04:31. > :04:34.euro worth of up value on Deutsche Bank's books. They are certainly
:04:35. > :04:40.worried about something. Whether they are worried about short-term or
:04:41. > :04:44.long-term... I'm not saying, my worries are more in the long term,
:04:45. > :04:50.that I worry about Deutsche Bank's strategy and culture and whether it
:04:51. > :04:55.has a business model that can earn decent returns over the long-term.
:04:56. > :05:03.Many share your worries about the outlook of Deutscher. But the recent
:05:04. > :05:07.appointment of the boss at the bank... Do you think he will pull
:05:08. > :05:10.off the renegotiated deal with the Department of Justice? We're looking
:05:11. > :05:19.at a five point for your rope bill instead of a 14 year and -- your row
:05:20. > :05:25.bill. I don't know. A very political times this, isn't it? Yes. It does
:05:26. > :05:29.look good he will get that figure down significantly from the original
:05:30. > :05:34.14 billion or something. That is much more manageable for Deutsche
:05:35. > :05:40.Bank's books, going forward. Deutsche is still a bank... You are
:05:41. > :05:43.telling us something very interesting before we came an hour.
:05:44. > :05:49.You said your research shows that smaller banks in Europe, around the
:05:50. > :05:52.world, operate much better than the big banks because Deutsche Bank is
:05:53. > :05:57.still, I would say, one of those banks that is too big to fail. They
:05:58. > :06:04.can't let this bank fail? No, it's not going to fail, but in the long
:06:05. > :06:09.term I would... We are seeing some excellence from smaller banks and
:06:10. > :06:14.banks that are decentralised, like the bank in Sweden. It operates on a
:06:15. > :06:17.decentralised basis, so it's like a series of smaller banks. There is
:06:18. > :06:21.some real excellence there. In the long term that is a threat to
:06:22. > :06:32.Deutsche because they are outperforming Deutsche. They do
:06:33. > :06:35.outperform the bigger banks. We appreciate your time, thank you for
:06:36. > :06:39.joining us. We will keep an eye on that and any
:06:40. > :06:43.news coming out of Deutsche about job losses or any deal with the
:06:44. > :06:45.United States and we will fill you in.
:06:46. > :06:48.The electric carmaker Tesla, says deliveries more than doubled
:06:49. > :06:51.in the three months to October compared to a year ago.
:06:52. > :06:53.Tesla is yet to make a profit and is facing criticism
:06:54. > :06:57.after its autopilot system was linked to several accidents.
:06:58. > :06:59.The autopilot feature makes the vehicles automatically change
:07:00. > :07:02.lanes and react to traffic, but it is not a fully-fledged
:07:03. > :07:07.India has ratified the Paris Climate Change Agreement by committing
:07:08. > :07:09.to produce at least 40% of its electricity from non-fossil
:07:10. > :07:22.Last December, countries agreed to cut emissions in a bid to keep
:07:23. > :07:24.the global rise in temperatures below two degrees Celcius.
:07:25. > :07:33.India is one of the biggest emitters of greenhouse gasses in the world.
:07:34. > :07:39.I got stuck with the tablet today. Keep taking the pills, Aaron!
:07:40. > :07:45.What pills? Tablets!
:07:46. > :07:51.That went straight over my head. IMG, job cuts. We were talking about
:07:52. > :07:57.Deutsche Bank... There may be 1000 jobs going at
:07:58. > :08:05.Deutsche in its IT section. Up to 9000 in total at Deutsche That is
:08:06. > :08:08.what the speculation is. IMG are talking about 1800. This is all part
:08:09. > :08:16.of the plan to save about 900 million euros by 2021.
:08:17. > :08:20.So lots of jobs going across Europe, I would say. Let's talk about what's
:08:21. > :08:26.been going on on financial markets around the world.
:08:27. > :08:31.First, Karishma Vaswani is in Singapore and Sterling
:08:32. > :08:34.is down in Asian trading after Prime Minister Theresa May set
:08:35. > :08:36.a date for starting the formal Brexit negotiation process.
:08:37. > :08:42.This is in reaction to what has been happening in Birmingham, at the Tory
:08:43. > :08:47.conference. Investors not liking it, the strength of the pound? That is
:08:48. > :08:51.absolutely right. The British pound has been falling in Asian trade down
:08:52. > :08:56.about half a percent after those comments from the British Prime
:08:57. > :09:00.Minister that the timeline for the process of the separation from the
:09:01. > :09:04.European Union. You would think given that there is more
:09:05. > :09:08.transparency, a bit more detail about when this is supposed to
:09:09. > :09:13.happen, that what Asian investors have been clamouring for, more
:09:14. > :09:17.details, more of a timeline as to when the timeline would happen that
:09:18. > :09:20.they would be a bit more optimism in Asian markets today but that hasn't
:09:21. > :09:24.happened. Even though the falls in the pound were not as dramatic as
:09:25. > :09:28.what we saw back in June, many in Asia are telling me that's because
:09:29. > :09:33.there is still a lack of confidence in how the UK is going to handle
:09:34. > :09:36.this transition, in particular access to the single market. That is
:09:37. > :09:41.key for many Asian businesses who are looking to continue doing
:09:42. > :09:48.business in the West. OK, thank you so much. Good to see you.
:09:49. > :09:57.We can see the markets have. In Hong Kong the Hang Seng was pushed higher
:09:58. > :10:02.by gambling figures, lifting casino operators. In Japan talking about
:10:03. > :10:07.that confidence survey and not moving, stagnant among the big
:10:08. > :10:10.manufacturers in Japan. China manufacturing data out, slightly
:10:11. > :10:14.better than expected in September. Let's have a look at markets in
:10:15. > :10:18.Europe trending right now. All of them apart from Germany, who are
:10:19. > :10:24.shut for a public holiday today. We no movement on Deutsche shares, we
:10:25. > :10:28.will see how that affects estates later. France up a tiny better.
:10:29. > :10:30.We'll talk more about Europe in a moment or two.
:10:31. > :10:32.And Samira Hussain has the details about what's ahead
:10:33. > :10:40.It is a new week and a busy one. Auto-makers will be reporting sales
:10:41. > :10:45.numbers for the month of September. Stay tuned for details on how well
:10:46. > :10:53.car-makers have fared in the world's largest economy. In the US election
:10:54. > :10:57.news, vice presidential nominee Mr p and Tim Kane well hold their only
:10:58. > :11:02.debate in the state of Virginia. The International monetary fund will be
:11:03. > :11:08.holding their annual meetings in Washington this week. And at the end
:11:09. > :11:12.of the week, we get a look at the health of the labour market when the
:11:13. > :11:14.latest jobs report is released. US jobs, always important!
:11:15. > :11:20.Jeremy Stretch, head of currency strategy for CIBC World Markets.
:11:21. > :11:30.Let's start with this. Let's start with the pound react reacting in
:11:31. > :11:33.Asia to what's happening in Birmingham today. Philip Hammond,
:11:34. > :11:40.the UK's new wish Chancellor will speak. There were comments over the
:11:41. > :11:46.weekend about how he is going to present a very different style to
:11:47. > :11:55.George Osborne. What do you think that will do... Will that keep the
:11:56. > :11:58.pound as it is all adds strength? There is some uncertainty regarding
:11:59. > :12:04.the fiscal strategy the government. The main plank of the Osborne
:12:05. > :12:08.Chancery has been removed. Hammond has been saying on BBC radio this
:12:09. > :12:13.morning about the changing environment that the UK finds itself
:12:14. > :12:16.in. That is the reason, justification, to change fiscal
:12:17. > :12:21.strategy. Markets will be watching for the nuances today and also into
:12:22. > :12:25.that Autumn Statement on November 23, to see if there will be any
:12:26. > :12:30.fiscal spending plans that will be brought forward to try and provide a
:12:31. > :12:33.benefit to the UK economy into 2017, because we are continuing to see
:12:34. > :12:37.these headwinds about business investment, which will potentially
:12:38. > :12:42.mitigate growth targets for next year. The government has to
:12:43. > :12:46.potentially step in, to try and limit the damage. It's interesting,
:12:47. > :12:53.with sterling. We heard about the day in Asia today. Sterling is going
:12:54. > :12:59.to be so sensitive until the summer of 2019, surely? Yes, sterling will
:13:00. > :13:04.be inherently sensitive. The talk over the weekend about the Prime
:13:05. > :13:08.Minister talking a about this reform in 2017, it sets up a difficulty in
:13:09. > :13:11.parliament in terms of pushing through that. That is the sort of
:13:12. > :13:17.environment that doesn't play well with International investors. They
:13:18. > :13:21.don't like uncertainty, which will be amplified by political skirmishes
:13:22. > :13:25.in the House of Commons and House of Lords. And in Brussels. Yes, indeed.
:13:26. > :13:30.There will be plenty of opportunity as we move forward to the triggering
:13:31. > :13:35.of Article 50 for investors to be scared away and that sterling
:13:36. > :13:41.rallies will be short lived. That will be bad news for most people
:13:42. > :13:45.accept exporters. Yes. There is always a small silver lining.
:13:46. > :13:51.Exporters will get a benefit, but if they are importing in order to make
:13:52. > :13:52.the export there will be quid pro quo. You will take this through some
:13:53. > :13:56.of shortly. Until then, thank you. Still to come, how
:13:57. > :13:58.to move your business We get the inside track
:13:59. > :14:08.on a Japanese fashion brand This is business live on BBC News.
:14:09. > :14:10.First, let's talk about the Conservative Party conference
:14:11. > :14:16.underway in Birmingham. The Chancellor Philip Hammond is the man
:14:17. > :14:19.taking all the attention today, promising a new plan for the new
:14:20. > :14:20.circumstances Britain is facing after the Brexit vote.
:14:21. > :14:22.Figures from the Office for National Statistics last week
:14:23. > :14:24.showed the services sector grew faster than expected.
:14:25. > :14:28.So was Phillip Hammond, a key figure of the remain campaign,
:14:29. > :14:31.wrong to warn of financial cases if we voted to leave?
:14:32. > :14:38.He was speaking to the BBC this morning.
:14:39. > :14:44.First of all I am delighted the economy has proved as resilient as
:14:45. > :14:49.it has. But look, we are going through a process, we haven't served
:14:50. > :14:53.the article 15 notice yet. We must expect some turbulence as they go
:14:54. > :14:57.through this negotiating process and there will be a period of a couple
:14:58. > :15:01.of years, or perhaps even longer, when businesses are uncertain about
:15:02. > :15:06.the final state of our relationship with the European Union. During that
:15:07. > :15:09.period we need to support the economy, to make sure consumer
:15:10. > :15:14.confidence remains, to make sure business confidence is stable, so
:15:15. > :15:20.that we get the investment that keeps the jobs, that keeps Britain
:15:21. > :15:23.growing. That's my challenge as we go through this period.
:15:24. > :15:25.Hammond is also expected to announce a boost for ?5 billion
:15:26. > :15:30.house-building stimulus package today funded through borrowing.
:15:31. > :15:32.Former Chancellor, George Osbourne, had promised a budget
:15:33. > :15:57.It was the right approach for that time. But on 23rd June, the decision
:15:58. > :16:00.the British people made changed our economic circumstances. We're going
:16:01. > :16:03.to go through a period as I have said when there will be some
:16:04. > :16:06.turbulence and uncertainty in the economy and it is right that the
:16:07. > :16:11.Government has the flexibility to be able to support the economy, to
:16:12. > :16:16.support jobs, to support economic growth during that period. And that
:16:17. > :16:20.means that we have to reset our expectation about when we can reach
:16:21. > :16:25.that point of sustainable public finances. George Osborne had set the
:16:26. > :16:31.date at the end of this Parliament, 2019/2020, what we have said is that
:16:32. > :16:34.we will not aim for a surplus in 2019/2020, but that doesn't mean
:16:35. > :16:42.that we are abandoning fiscal discipline.
:16:43. > :16:51.Philip Hammond there. More on our website.
:16:52. > :16:55.Leading German firms have rushed to defend Deutsche Bank
:16:56. > :16:57.amid concerns over the troubled lender's financial health.
:16:58. > :16:59.Executives from Siemens, Daimler, Munich Re and BASF have
:17:00. > :17:16.The Goldman Sachs is closed. It is a public holiday.
:17:17. > :17:24.-- DAX. And now let's get the inside track
:17:25. > :17:27.on the Japanese fashion brand Kemi. It is a well-known brand in Japan
:17:28. > :17:33.which is now hoping to become The brand was founded by Junko Kemi,
:17:34. > :17:38.a businesswoman who struggled to find clothes that worked
:17:39. > :17:40.with her busy professional life In a moment we'll talk
:17:41. > :17:45.to her about her journey from the rather restrained
:17:46. > :17:48.Japanese corporate world Kemi now has five shops in Japan
:17:49. > :17:56.and a thriving online business too. The business employs
:17:57. > :17:59.around 30 people. Kemi selected London as their first
:18:00. > :18:05.international territory due The company's international
:18:06. > :18:08.expansion plans include other financial hubs like Singapore,
:18:09. > :18:15.Frankfurt and New York. Junko Kemi, founder and lead
:18:16. > :18:29.designer of Kemi joins me now. Welcome. Good morning. Welcome to
:18:30. > :18:35.the programme. Can I start? I'm interested. You came from a very,
:18:36. > :18:41.the Japanese corporate world, right and let's be frank, that's a very
:18:42. > :18:45.serious, rigid, corporate world. And it is male dominated. Yes, male
:18:46. > :18:51.dominated and you have gone from that into this free flowing fashion
:18:52. > :19:03.industry. How did you make that transfer? I was born in Japan and my
:19:04. > :19:13.grandmother owned a shop. I grew up seeing her business and she was my
:19:14. > :19:21.role model. She enjoyed her role and the responsibility and she made her
:19:22. > :19:29.customers so happy. Ever since I was 16 years old, I dreamt that I would
:19:30. > :19:33.own my own company. After that I joined a big management consultancy,
:19:34. > :19:39.a corporate strategy company as a management consultant and after
:19:40. > :19:44.that, I started my own marketing companies and for three years I
:19:45. > :19:53.worked so hard as a consultant and after that when Japan suffered a big
:19:54. > :19:58.earthquake in 2011, I thought that life is short and I want to support
:19:59. > :20:06.the business women like my grandmother. So I started Kemi. How
:20:07. > :20:10.easy was it to start? You're very established if Japan. You have got
:20:11. > :20:13.high-profile clients wearing your clothes, some are on television,
:20:14. > :20:24.some are celebrities. How did you get to that point? So basically, we
:20:25. > :20:43.are a very small company. So we are using social media and the customers
:20:44. > :20:48.friends and friends of friends saw a TV anchor. And tell us about your
:20:49. > :20:57.dresses. They are not cheap in the UK. Can I hold one up. The point is
:20:58. > :21:07.they're hand-made in Japan. This is silk, isn't it? This is silk. They
:21:08. > :21:11.are washable. So I can put this in a washing machine? Yes, everything,
:21:12. > :21:16.the jacket and the suit and these dresses, we can wash. They would
:21:17. > :21:24.look good on you Aaron. I'm thinking Saturday night! I washed over ten
:21:25. > :21:28.times. Wow. That's amazing. London, I mean, was that an easy decision to
:21:29. > :21:38.decide London is going to be the first? Yeah. Yeah. Yeah. I love
:21:39. > :21:42.London and the multi-cultural and the professional services are big
:21:43. > :21:45.here. But how do you plan to stand out? It is such a competitive market
:21:46. > :21:54.in London? There are so many places to go and buy things like this. As
:21:55. > :22:01.we did already in Japan, so we focus on professional busy women and they
:22:02. > :22:07.are using an online shop first and we are planning to have a physical
:22:08. > :22:14.shop in the City area of London and in Canary Wharf in one year. Canary
:22:15. > :22:26.Wharf watch out! Thank you very much for joining us. Good luck with your
:22:27. > :22:31.launch here in London. Shthis is how to stay in touch. The
:22:32. > :22:34.Business Live page is where you can stay ahead with the day's breaking
:22:35. > :22:38.business news. We will keep you up-to-date with the latest details
:22:39. > :22:41.with insight and analysis from the BBC's team of editors right around
:22:42. > :22:48.the world and we want to hear from you too. Get involved on the BBC
:22:49. > :22:53.Business Live web page at: On Twitter, we're at:
:22:54. > :23:00.And you can find us on Facebook at. . Business Live on TV and online
:23:01. > :23:04.whenever you need to know. So you have got no excuses.
:23:05. > :23:16.As you can see, Jeremy is back. On demand TV switches off, National
:23:17. > :23:20.Grid power strike for a cuppa. This is National Grid where it would see
:23:21. > :23:25.a massive surge when the kettle goes on in the old days, the commercial
:23:26. > :23:28.break. It is the old days. The idea that we all watch a programme
:23:29. > :23:32.collectively and we get to the end of the programme or an ad break and
:23:33. > :23:35.everybody would make a cup of tea ready for the next part. Clearly,
:23:36. > :23:40.there are more and more people who watch on demand. I watch virtually
:23:41. > :23:44.no TV live. I watch all of it on demand or recorded. These issues and
:23:45. > :23:48.it is interesting for advertisers as well, of course, because I don't
:23:49. > :23:53.watch any advertising breaks. We just whiz through it. One of the
:23:54. > :23:58.structural changes. It is the main screen or the second screen if you
:23:59. > :24:04.will second screen being the tablet. One viewer says, "I watch live TV as
:24:05. > :24:12.long as time is available." Does he make the tea? This viewer says I
:24:13. > :24:18.only watch Business Live. The list goes on. Due it busy schedule. News
:24:19. > :24:21.bulletins, if you want to watch those live, but again, you can watch
:24:22. > :24:26.up with news on the internet or with other media sources. There is the
:24:27. > :24:36.pause button. You don't have to wait for the commercials. Right. Other
:24:37. > :24:42.stories... The Chinese. UK shops looking to Chinese tourists for a
:24:43. > :24:47.golden week. There is a flip side about the Brexit story because we
:24:48. > :24:52.find as consumers if we're going abroad the pound goes not as far as
:24:53. > :24:56.it did pre-Brexit. But for those visitors coming to the UK, whose
:24:57. > :25:00.currencies have appreciated they can get what they perceive to be bar
:25:01. > :25:04.gains. In the context of Chinese shoppers who are keen spenders it
:25:05. > :25:08.maybe the case that as we see another influx of Chinese visitors
:25:09. > :25:11.during the golden week period that could be good news for retailers.
:25:12. > :25:15.Have we got any evidence that this is happening or is this the hope
:25:16. > :25:19.from the point of view from retailers? There is a lot of
:25:20. > :25:23.anecdotal and the foot fall data is variable on occasion. So I think
:25:24. > :25:27.what we're seeing is domestic consumers are being more reticent in
:25:28. > :25:29.terms of spending and we are hoping that we're going to get the foreign
:25:30. > :25:34.visitors who are going to fill the gap, but you have to debate where
:25:35. > :25:38.the foreign visitors come to. In London, we will see evidence that
:25:39. > :25:45.through their foot fall in the high street. In regional centres, perhaps
:25:46. > :25:50.less so. We keep saying it is the flip side, but even property is 10%,
:25:51. > :25:53.15% cheaper. There is a competitive advantage if you're prepared to take
:25:54. > :25:56.the risks which maybe associated with the next two or three years.
:25:57. > :25:59.Jeremy, thank you very much. It is a long haul flight. That's for
:26:00. > :26:00.sure. That's Business Live for today. We will see you again
:26:01. > :26:11.tomorrow. Bye-bye. Hello there. Good morning. We saw
:26:12. > :26:16.some big improvements in the weather over the weekend and it is a very
:26:17. > :26:17.quiet week ahead as well. This was the Weather